G.R. No. 169263. September 21, 2011 (Case Brief / Digest)

### Title:
**City of Manila v. Melba Tan Te: A Case of Expropriation for Socialized Housing and Procedural Matters in the Philippine Supreme Court**

### Facts:
The City of Manila, under Ordinance No. 7951 approved by Mayor Joselito L. Atienza in 1998, sought to expropriate properties for low-cost housing, targeting a property owned by Melba Tan Te among others. Tan Te acquired her property in 1996, and legal actions for eviction of illegal occupants were ongoing. The City’s initial expropriation case was dismissed due to procedural deficiencies and lack of compliance with R.A. No. 7279 (Urban Development and Housing Act of 1992).

In 2000, the City filed a second expropriation complaint, asserting compliance with R.A. No. 7279 by offering to purchase the property and depositing PHP 1,000,000 as provisional compensation. Tan Te motioned for dismissal based on the invalidity of the ordinance, non-compliance with R.A. No. 7279, and her status as a small property owner exempt from expropriation. The trial court dismissed the complaint, focusing on the absence of proper compensation representation, necessary compliance with Sections 9 and 10 of R.A. No. 7279, and Tan Te’s exemption status. Appeals to the Court of Appeals were unsuccessful for the City of Manila.

### Issues:
1. Was the dismissal of the City of Manila’s expropriation complaint by the trial court correct based on procedural and substantive grounds?
2. Did the Court of Appeals err in dismissing the City’s appeal and denying reconsideration?

### Court’s Decision:
The Supreme Court granted the petition, setting aside the orders of the Court of Appeals and trial court, and remanding the case for further proceedings. Critically, it highlighted a procedural oversight: Rather than a motion to dismiss, Tan Te should have filed an answer to the expropriation complaint, as per the amended Rule 67 of the Rules of Court. The Court determined that Tan Te’s objections warranted evidence presentation and should have been dealt with during trial, not at the dismissal stage. Thus, Tan Te was directed to file her answer within ten days from the decision’s finality.

### Doctrine:
The decision reiterates the broader conception of “public use” in the context of eminent domain, encompassing socialized housing as aligned with public welfare. It underscores that procedural amendments to Rule 67 prioritize the filing of an answer over a motion to dismiss in expropriation cases, emphasizing the need for full evidentiary hearings on matters pertaining to compliance with statutory requirements and the legitimate exercise of eminent domain.

### Class Notes:
– The concept of “public use” in eminent domain includes socialized housing, expanding beyond literal public utilization to indirect public benefits.
– Amendments to Rule 67 of the Rules of Court require objections and defenses against eminent domain to be raised in an answer, not a motion to dismiss, highlighting the judiciary’s preference for resolving such issues through trial.
– Expropriation requires compliance with designated legal procedures, notably R.A. No. 7279 for socialized housing projects, emphasizing prior engagement in negotiations and consideration of small property owners’ exemptions.

Relevant Statutes:
– Rule 67, Rules of Court of the Philippines: Governs expropriation proceedings, requiring defendants to file answers instead of motions to dismiss when raising objections.
– R.A. No. 7279 (Urban Development and Housing Act of 1992): Mandates prioritization and compliance processes for acquiring land for socialized housing.

### Historical Background:
The case underscores the tension between urban development initiatives and the rights of property owners within the Philippine legal framework. This tension is mediated by laws such as R.A. 7279, designed to balance the need for socialized housing with respect for property rights. The procedural aspect highlights the evolution of court rules affecting the dynamics of expropriation cases, reflecting the judiciary’s adjustments to ensure both governmental and individual interests are fairly considered.


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